LG Chem Michigan Inc. Announces Plans for Start of Production

  LG Chem Michigan Inc. Announces Plans for Start of Production

Business Wire

HOLLAND, Mich. -- May 5, 2013

LG Chem Michigan Inc. (LGCMI) announced today the company will launch
commercial production of automotive lithium-ion battery cells in July, 2013 at
its Holland, Michigan facility once it has successfully completed the
Production Part Approval Process (PPAP) and gained customer approval.

Test runs have already begun at the facility and the company is targeting the
start of commercial production this July. LGCMI anticipates shipping product
by the end of this summer. The plant initially will manufacture batteries for
the Chevrolet Volt, and the volume is expected to consistently increase
depending on the EV market and securing additional contracts. The company is
also working to procure additional programs for future production.

LGCMI had originally planned to install five assembly lines in the Holland
facility but has set up three lines so far. The company said it is planning on
finishing the remaining two lines by September 2015 and will proceed with the
plan as they study the market demand and other surrounding circumstances.

LGCMI said the launch of commercial production at the facility will position
the company strategically to obtain additional electric vehicle (EV) business
in the United States and to compete for energy storage systems (ESS) business.
Lithium-ion batteries are expected to play an important role in smart grid
electric utility management as storage devices for electricity produced by
both conventional and alternative methods.

“LGCMI remains committed to achieving the vision on which our Holland facility
was built,” said Sain Park, who is President at LGCMI. “We remain committed to
creating good jobs in the Holland community and supplying excellent products
to our customers. Our plan is to operate the Michigan plant as a strategic
location to meet customer needs, secure future orders and compete aggressively
in the ESS battery market.”

The company said commercial production at LGCMI will provide the ability to
supply other U.S. automotive companies efficiently and increase its
competitive position in securing future orders.

Currently, LG Chem, Ltd. supplies EV batteries to more than 10 automotive OEM
companies. In addition, LG Chem supplies ESS mass storage batteries to about
10 global clients which include ABB (a global leader in power and automation
technologies), SCE (the largest power utility company in California), and IBC
Solar in Germany.

About LG Chem

LG Chem, Ltd. is Korea’s largest diversified chemical company and operates
three main business units: Petrochemicals, IT & Electronic Materials and
Energy Solutions. The chemical business manufactures a wide range of products,
from petrochemical goods to high-value added plastics. It also extends its
chemical expertise into high-tech areas such as electronic materials and
rechargeable batteries. Throughout multiple production facilities and an
extensive distribution network, LG Chem strives to become a leading global
company. For more information, please visit the LG Chem website at
www.lgchem.com.

Contact:

For LGCMI
Randy Boileau, 616.786.4461
randy.boileau@boileaucommunications.com
 
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